What R6 million houses look like in South Africa vs UK, Ireland, Netherlands, Australia
Global interest rate hikes and rising inflation have made purchasing a house harder this year, no matter where new homebuyers are looking.
The most recent interest rate hike by the South African Reserve Bank (SARB) in late November pushed interest rates domestically up another 75 basis points, taking the prime lending rate to 10.5%.
In light of this, a R1 million bond will now cost an extra R500 every month, assuming it’s being paid off over a 20-year period.
Tony Clarke, managing director at Rawson Property Group, said that homebuyers in South Africa are likely to continue to feel the pinch and practice belt-tightening as interest rates show no signs of easing.
Economists at Matrix Fund Managers, including Carmen Nel, note that global uncertainty in terms of inflation outlooks is likely to pressure the SARB to maintain its price-hiking practices.
The latest data from the International Monetary Fund (IMF), last updated on 22 September 2022, showed that global house prices have consistently been rising.
Emigration hotpot Australia reported the second-highest real house price annual increase at 19%, behind Turkey at 26% and just above New Zealand at 18%.
The Netherlands was also among the top 10 increases sitting at an annual increase of 10.49%, according to the IMF.
The graph below shows the steady increase in real house prices across the globe, as reported by the IMF:
BusinessTech looked at what R6 million gets you around the world compared to South Africa:
South Africa
Cape Town
4 Bedroom House for Sale in Rondebosch – R5,900,000
Johannesburg
4 Bedroom House for Sale in Craighall Park – R5,995,000
Pretoria
4 Bedroom House for Sale in Rietvalleirand – R5,950,000
United Kingdom
2 Bedroom Boat house for sale in Blomfield Road, London – R5,875,900
4 Bedroom House for sale in Rake Lane, Manchester, M27 – R6,093,600
1 Bedroom for sale in Gladstone Mews, Wood Green, London – R6,093,600
Netherlands
1 Bedroom apartment for sale in Zegwaart-South-West – R5,025,000
Ireland
3 Bedrooms house for sale in Dublin, 76 Brandon Road, Drimnagh – R5,961,750
Australia
4 Bedroom house for sale in Perth, 28 Torcross Street, Warnbro – R5,960,519
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